Best Western Hotels & Resorts

Market Update: DJIA up 270 points, S&P 500 rose 23 points, Nasdaq remained flat, and 10-year treasury yield jumped to 3.85%. Lodging Industry News: STR reported a slight decline in hotel RevPAR , but a 12% increase compared to the same week in 2019. Hotel Renovations and Openings: StepStone Hospitality completed a $3.5 million renovation at Fairfield Orlando I-Drive Convention Center, and The Ritz-Carlton Naples reopens after extensive renovations with new amenities and redesigned rooms.

Choice Hotels to integrate nearly 600 Radisson Americas hotels onto its reservation delivery engine and loyalty program. Dauntless Capital Partners purchases Hilton Garden Inn Bethesda Downtown for immediate renovation. Excel Hotel Group plans to build a 130-room SpringHill Suites Hotel in Grover Beach, California.

The DJIA, Nasdaq, and S&P 500 experienced growth with varied changes in lodging stocks. Morgan Stanley adjusted price targets for numerous lodging companies, including Sunstone Hotels and Host Hotels . Major hospitality companies, such as Selina Hospitality , Whitestone Companies , and Marriott Hilton Head Resort & Spa, announced important business updates including investments, renovations, and acquisitions. EOS Hospitality , Hotel Equities , and Aimbridge Hospitality made key personnel changes. Accor plans to open 1,200 hotels in the next five years, with a RevPAR growth of 15% to 20%. Aimbridge Hospitality will manage the Alliance Palace Aparthotel in Batumi, Georgia.

Market Performance: DJIA fell 5 points, Nasdaq rose 128, and S&P 500 increased by 16 points; lodging stocks underperformed consumer and leisure stocks. Jefferies Nantucket Conference: Lodging companies report moderation in leisure demand, strength in group business, and mixed recovery of business transient; limited conviction impacting strategies and stock performance. Hotel Industry Updates: Canada's hotel industry shows improved performance; various hotels undergo renovations, acquisitions, and openings across different locations.

Stock market indices experienced a decline, with DJIA falling 102 points, Nasdaq down 165 points, and S&P 500 falling 23 points. The American Hotel & Lodging Association successfully lobbied for new PPP eligibility guidelines, allowing hotel owners who used third-party management companies to qualify for loan forgiveness. The U.S. hotel industry reported improved performance in May 2023 compared to the previous year, with increased occupancy, ADR, and RevPAR, particularly in the top 25 markets.

American visitor arrivals to Japan increased by 3.6% in the first four months of 2023 compared to the same period in 2019, making the U.S. the only Western nation, apart from Mexico, to experience a rise in tourism to Japan. Hongkong Land unveiled its $8 billion Shanghai West Bund Financial Hub project, which will include office buildings, luxury residential apartments, hotels, a public art center, and retail spaces. The development will be completed in three phases by 2027, and Hongkong Land plans to roll out 10 new developments in China in the next five years. Macau Legend Development announced its intention to sell its Laos gaming operation for $45 million to a Japanese citizen, as the company has faced financial difficulties and its owner has been arrested. After the sale, Macau Legend will have remaining plans to build a hotel and casino in Cape Verde.

US stock indexes rose slightly on Friday, but lodging stocks were mixed with SOND surging 23% after a downgrade of Park Hotels & Resorts by ISI Evercore Group. Chicago broke hotel occupancy records last weekend thanks to Taylor Swift concerts and other events, generating more than $39 million in hotel revenue. Marriott International announced its first-ever all-inclusive resort in Cancun, expected to open in 2024, and JW Marriott Mexico City completed renovations of its guestrooms and suites, with more upgrades to come by 2023.

Marriott International partners with Hiap Hoe Limited to bring the Aloft Hotels brand to Singapore, opening the largest Aloft branded hotel in the world with 785 rooms in Zhongshan Park. Pan Pacific Hotels Group unveils its flagship hotel, Pan Pacific Orchard, Singapore, featuring terraced greenery and a unique Atelier-in-Residence program, along with three dining concepts and a gin distillery. Gran Melia Nha Trang in Vietnam is set to open as an all-villa property with private pool villas, Asia's first outpost of the Spanish restaurant Hispania, and a range of wellness offerings.

The hospitality industry is experiencing optimism and cautiousness, with hotels considering divesting assets and anticipating a potential distressed sale boom. Hoteliers are optimistic about increasing demand, but face challenges such as high-interest rates, labor shortages, and decreased construction activity. The U.S. hotel forecast shows improvements in occupancy, ADR, and RevPAR, while hotels are offering incentives to combat staffing shortages. International visitor arrivals to the U.S. continue to rise, with Mexico and Canada leading the way.

H World Group sells one-fifth of its OYO stake, generating 500% return on investment. Dalian Wanda Group seeks to offload assets amid financial challenges, including selling a Shanghai hotel and shopping malls. IHG Hotels opens new Holiday Inn property in Melbourne, featuring modern amenities and conference facilities.